Firms and Labor in Times of Violence: Evidence from the Mexican Drug War

Utar, Hâle

doi:10.2139/ssrn.3338672

Cited by 6 publications

(4 citation statements)

References 32 publications

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“…This 32 Some regions in Mexico experience an spike in the homicide rate between 2007-2010, which could also affect population adjustment costs (Aldeco et al, 2019;Ajzenman et al, 2015). However, a strand of the literature finds muted effects of violence on migration in Mexico over the same period (Basu and Pearlman, 2017;Utar, 2021). See appendix for a more detailed discussion of the related literature.…”

Section: Discussionmentioning

confidence: 99%

“…Second, in Table C.8, I show that my migration and population results are not driven by increased regional violence by dropping the municipalities in the most violent states when analyzing the changes in population growth, migration, and manufacturing employment between 2005 and 2010. These states are: Baja California, Chihuahua, Durango, Guerrero, Michoacán, Nayarit, Sinaloa, Sonora (Utar, 2021;Aburto et al, 2016;Dell, 2015).…”

Section: B1 Tablesmentioning

confidence: 99%

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Trade Shocks, Population Growth, and Migration

Guerrico

2023

The World Bank Economic Review

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This paper examines the effect of trade-induced changes in Mexican labor demand on population growth and migration responses at the local level. It exploits cross-municipality variation in exposure to a change in trade policy between the United States and China that eliminated potential tariff increases on Chinese imports, negatively affecting Mexican manufacturing exports to the United States. Municipalities more exposed to the policy change, via their industry structure, experienced greater employment loss. In the five years following the change in trade policy, more exposed municipalities experience increased population growth, driven by declines in out-migration. Conversely, 6 to 10 years after the change in trade policy, exposure to increased trade competition is associated with decreased population growth, driven by declines in in-migration and return migration rates, and increased out-migration. The sluggish regional adjustment is consistent with high moving costs and transitions across sectors in the short term.

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Section: Discussionmentioning

confidence: 99%

Section: B1 Tablesmentioning

confidence: 99%

Trade Shocks, Population Growth, and Migration

Guerrico

2023

The World Bank Economic Review

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“…Amodio and Di Maio (2018) find that, in Palestine during the Second Intifada, conflict disrupted the supply of inputs, pushing exposed firms to substitute domestically produced materials for imported ones and reducing their output value. Utar (2020) documents that, in the context of the Mexican Drug War, urban violence reduced firms' output, product scope, employment, and capacity utilization.…”

Section: Introductionmentioning

confidence: 99%

Peaceful entry: Entrepreneurship dynamics during Colombia’s peace agreement

Bernal

Prem

Vargas

et al. 2024

Journal of Development Economics

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“…Drug-related violence imposes high societal and economic costs in areas where violence occurs. These costs include deleterious e↵ects on education (Brown and Velásquez, 2017;Koppensteiner and Menezes, 2021;Chang and Padilla-Romo, 2022), health (Koppensteiner and Manacorda, 2016;Brown, 2018;Lindo and Padilla-Romo, 2018;Martínez and Atuesta, 2018), and labor market outcomes (Montoya, 2016;Utar, 2018;Velásquez, 2019). Moreover, the detrimental e↵ects of local violence spill over into safe areas via migration and peer exposure to violence in elementary school (Padilla-Romo and Pelu↵o, 2023).…”

Section: Introductionmentioning

confidence: 99%